Waterloo Region Real Estate Market Update – August Edition
July proved to be an incredibly busy month in Waterloo Region, with the average home prices rising to the highest they’ve been in over a decade.
We’ve seen home value remain stable for the past few months, and along with the rise in home value in July. We also saw an increase in sales for the month of 25.7%, compared to the same month last year, and well above the 10-year average.
“Competition was high for buyers looking to lock down a house in July,” said Colleen Koehler, President of KWAR. “The rate of home sales in July resembled the kind of month we would normally see in May, and I chalk up much of that to the pent up demand that built as we moved into Stage 3 of reopening in mid-July.”
The average days to sell in July was 17 days, compared to 22 days in July 2019. 734 residential homes were sold through the Multiple Listing System (MLS® System) of the Kitchener-Waterloo Association of REALTORS® in July 2020, according to KWAR, up from the 10 year average of 531.
- Detached homes: 464 sold – 39.3% increase (from July 2019)
- Condominium Apartments: 65 sold – 3.2% increase
- Semi-Detached Homes: 52 sold – 23.8% increase
- Townhouses: 153 sold – 4.8% decrease
The Average Sale Price Of All Residential Properties Sold In July
“Elevated homebuyer activity combined with constrained supply put huge pressure on prices last month,” said Koehler. “Homebuyers remain very confident about owning a home in Waterloo Region, and with mortgage rates still at near-record-low levels, I expect we will continue to see strong home buyer demand going into the fall”.
- All residential properties: $639,814 – 22.8% increase (from July 2019)
- Detached homes: $745,149 – 21.4% increase
- Apartment-Style Condominiums: $392,770 – 15.2% increase
- Semi-detached Homes: $522,872 – 20.4% increase
- Townhomes: $465,756 – 12.8% increase
New Home Listings in July
July saw an increase of 4.3% compared to July of the previous year and 15.5% over the previous 10-year average for July.
- There were 888 new listings added to the MLS® System in KW and area in July.
- The total number of homes available for sale in active status at the end of July was 592, a decrease of 32.6% compared to July 2019.
- The absorption rate remains low, at 1.3 months, a decrease of 27.8% compared to last year. (The previous 5-year average for July was 2.1 months.)
Safety First / Digital First
Koehler advises buyers to speak with their Realtor about the digital tools they use to minimize the need for direct physical contact. We must ensure that all of Health Canada’s guidelines are in place to reduce the risk of transmission. As we have previously stated, we have been a digital-first Real Estate Brokerage from day one, with the tools and experience to help you.
- All of our listings include a full online 360-degree virtual tour, so you may continue enjoying browsing properties from the comfort of your home.
- Electronic signature support for all documents.
- Our online move-in support platform.
- A private property web portal for Buyers.
- Online and video conferencing tools to enable Virtual Meetings.
What’s Ahead for the Real Estate Market?
The Bank of Canada is still expected to keep its key interest rate on hold at 0.25%, as we mentioned over the last 2 months. This is great news for home buyers looking to take advantage of lower mortgage rates. Lower mortgage rates can bring down monthly payments or increase a buyer’s purchasing power, as well as making it easier to qualify for a loan.